Posted in Affordable Care Act (ObamaCare), Deductibles, Economic Issues, Health Insurance, Individual Market, Individual ObamaCare Market, Insurance subsidies, Medical Costs, News From Washington, News From Washington, DC & Related Shenanigans, Policy Issues, Risk Adjustment, Risk Corridors, Subsidies, Uncategorized, Uninsured

The “Average” Obamacare Rate Hike May Be Much Lower than Advertised — and That Indicates More Adverse Selection | Health Policy Blog | NCPA.org

So, I have little doubt that in March 2015, we will be hearing lots of stories applauding Obamacare for lowering premiums even more than indicated by these early estimates. This does not show that Obamacare is saving money: It shows that Obamacare’s insurers are getting better at attracting healthy applicants.

Indeed, the preliminary research makes it very clear that new entrants are often the low bidders. Incumbents, who have one year’s worth of Obamacare claims experience, want to shrink market share. These new, low-premium competitors have finely tuned their risk-selection techniques.

The sickest patients will continue to suffer, even worse than they did in Obamacare’s first year.

via The “Average” Obamacare Rate Hike May Be Much Lower than Advertised — and That Indicates More Adverse Selection | Health Policy Blog | NCPA.org.

Author:

A primary care physician by training, my passion is researching and writing about the importance restoring patient centered care, supporting independent private physicians, promoting free-market solutions and seeking sustainable fiscal policy in healthcare.

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